Comments
The Zinc futures contract on the Multi Commodity Exchange (MCX) fell to a low of ₹207.3 a kg on Thursday and has reversed higher from there.
The contract has breached an intermediate resistance at ₹215 and is currently trading at ₹216. The near-term view is positive. A rise to test ₹220 is likely in the coming sessions. Whether the contract breaks above ₹220 or not will then decide the next move.
Inability to break above ₹220 and a pull-back decline thereafter can take the contract lower to ₹215 initially. Further break below ₹215 will increase the possibility of the contract extending the fall to ₹210 or even ₹207 again.
On the other hand, if the MCX-Zinc futures contract manages to break above ₹220 decisively in the coming days, it can gain momentum.
Such a break will pave way for a fresh rally targeting ₹230 and ₹235 levels over the medium term. On the charts, the bias is bullish and the possibility is high of the contract breaking above ₹220 in the coming days,
Medium-term perspective traders with a high-risk appetite can go long at current levels.
Accumulate at ₹210. Keep the stop-loss at ₹206 for the target of ₹230. Revise the stop-loss higher to ₹220 as soon as the contract moves up to ₹225.
Note: The recommendations are based on technical analysis and there is a risk of loss in trading
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.